A Review Of The Management Of Territorial Self-Governing Units

Original Language Title: o přezkoumávání hospodaření územních samosprávných celků

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=58210&nr=420~2F2004~20Sb.&ft=txt

420/2004 Coll.



LAW



of 10 June 1999. June 2004



a review of the management of territorial self-governing units and voluntary

municipalities



Change: 413/2005 Sb.



Change: 138/2006 Sb.



Change: 281/2009 Coll., 199/2010 Sb.



Change: 457/2011 Coll. 239/2012 Sb.



Change: 64/2014 Sb.



Parliament has passed the following Act of the Czech Republic:



§ 1



The subject of the edit



This Act regulates the examination of the management of local government

units, as well as the urban areas of the capital city of Prague, the voluntary

municipalities and regional councils of cohesion regions (hereinafter referred to as "territorial

all "), imposed by a special legislation" ^ 1 ") (hereinafter referred to as

"the review"), and provides subject terms, the procedure and rules

review.



§ 2



Subject review



(1) the subject of the review of the data on the annual management of the territorial

a whole, forming part of the final account, according to a special legal

code ^ 2) and



and) fulfilment of the revenue and expenditure of the budget of the ^ 3) including cash transactions,

relating to budgetary resources,



(b)) financial operations, concerning the creation and use of cash funds



c) costs and benefits of the business activities of the territorial unit,



(d)), relating to the operation of money pooled funds spent on

the basis of the contract between two or more territorial units, ^ 4) or on the

under a contract with the other legal or natural persons, ^ 5)



(e)), concerning the financial operations of foreign resources in the meaning of the

regulations on accounting, ^ 6)



(f)) and the management of the resources made available from the national

^ 7) Fund and other funds from abroad provided on the basis of

international treaties,



g) billing and settlement of financial relations to the State budget, to

the budgets of the regions, to the budgets of municipalities, to other budgets, to State funds

and to other persons.



(2) the subject of a further review is



and waste management and the management of) property in the possession of a territorial unit,



(b) loading and management) of the property of the State, which runs the territorial

whole,



(c)) and the implementation of the award of public contracts, with the exception of acts and

the revised procedures, supervisory authority according to a special legal

Regulation, ^ 8)



(d)) status of receivables and Payables, and dealing with them,



e) liability for the obligations of natural and legal persons, ^ 9)



f) stopping of movable and immovable property in favour of the third persons, ^ 10)



(g)) the establishment of easements to the assets of a territorial unit,



h) accounting-led regional total.



(3) the subject of the review of the data, are not covered by the

obligation of secrecy under the tax code.



§ 3



View to review



The subject of the examination referred to in section 2 shall be examined from the perspective of



and compliance with the obligations laid down by specific) law,

in particular, the provisions concerning the financial management of the territorial units, ^ 11) about

the management of their assets, accounting ^ 12) ^ 13) and remuneration, ^ 14)



(b) compliance with management) funds in comparison with the budget,



(c) compliance with the purpose of the subsidy) or returnable financial assistance and

the conditions for their use,



(d)) and the formal correctness of the documents reviewed operations.



The procedure for the review of



§ 4



Security review



(1) the municipality and voluntary communities that volumes are according to a special legal

code ^ 1) shall be entitled to request a review of the regional office, and the main

the city of Prague, which is under special legislation shall be entitled to

to request a review of the Ministry of Finance shall do so by 30 June. June

each calendar year, or within the same period to the competent authority in the

the meaning of § 5 (3). 3 notify, that have decided to enter the examination of the auditor

or the audit firm (hereinafter "the auditor"). The urban part of the

the capital city of Prague, proceed on the basis of specific legal

Code ^ 15) similarly against the municipality of the capital city of Prague.



(2) Regional Office and the Prague City Hall, on the basis of the request of the

or a notice referred to in paragraph 1 and the Ministry of finance, which, in the

special legislation carries out the review of the regions and the main

the city of Prague, draw up schedules examination (hereinafter "plan

review ") for the period from the Assembly plan to 30. June following

of the year.



(3) an overview of the municipalities, towns and urban voluntary volumes, parts,

that have decided to enter the examination of the Auditor, as well as plans

the review drawn up pursuant to paragraph 2 shall forward to the regional authorities and

Prague City Hall Ministry of finance in the 21st century. July

each calendar year.



(4) on the basis of the plan shall be carried out by the end of the calendar year, the partial

a review of the previous part of the calendar year and after the end of

the calendar year to perform a partial review for the remainder of the

the previous calendar year, and a single review for the entire

the previous calendar year.



(5) a one-off examination may take place, the regional authority for municipalities, which

do not exercise an economic activity and have a population of less than 800

persons. In other territorial units shall be effected a partial revision.



(6) for the purposes of the examination referred to in paragraph 4 is the crucial number of

the population registered in the municipality of permanent residence on the date 1. January

the calendar year to which the review relates.



(7) where the municipality, including the capital city of Prague, the voluntary volume

municipalities or urban part of the city of Prague enter review

Auditor, shall conclude a written contract with him to provide the audit

activities according to the law governing the activities of Auditors whose

necessities are also subject matter and content of the report view to review and

about the outcome of the review, the provisions of sections 2, 3 and

10, and on the period of transmission of this message.



(8) on the conclusion of the contract with the auditor shall inform the community and the voluntary volume

the municipalities of the competent regional authority, the urban part of the city of Prague

Prague City Hall and the capital city of Prague, the Ministry of

Finance. This information shall be made without undue delay, no later than

However, until 31 December 2006. January of the following year.



(9) failure to comply with the obligation to request a review of the Ministry of finance in the

the case of the city of Prague, the regional office in the case of a municipality or

voluntary volume municipalities and Prague City Hall in case of

the urban part of the city of Prague, or enter a review

Auditor, shall notify the competent přezkoumávající authority within the meaning of § 5 (3).

3 Board of the relevant territorial unit or authority of the volume in the

28 February of the following year and review.



§ 5



Assumptions for performance review



(1) Performance Review of, instruct the Ministry of Finance of the State employee

included in this Ministry, the General Directorate of financial or

the tax office State employees hired in these institutions, regional

the Office staff of the region and the Prague City Hall staff

the capital city of Prague; staff responsible for performance review (hereinafter the

"the Comptroller") must have at least a full secondary education, must meet the

request a practice consisting in activities related with professionally

subject to a review, at least for a period of 3 years, and must be established blameless. By

are without prejudice to the provisions of the specific legislation. ^ 17)



(2) For integrity, for the purposes of this Act shall not be considered an employee,

has been convicted for an intentional criminal offence, or for the crime of

misappropriation, or for an offence related to the exercise of public

Administration committed through negligence, if under the special rule

Regulation on the offender does not look as if he has been convicted.



(3) the Ministry of finance, the Directorate General financial, financial

Office, regional office, Prague City Hall (hereinafter referred to as

"přezkoumávající authority") is launching a review of the written notification

sent to the territorial unit not later than 5 days before the date of implementation of the performance

review and containing the name of the controller responsible for the management of

review.



(4) in the exercise of the review under section 6 to 12 is entitled to controller

request from the audited entity or from another control

authority of the accounting records, also through the central system of accounting

information of the State, or to request accounting records from the Central Manager

accounting information system of the State, under the conditions laid down by the law of

accounting.



The rules review



§ 6



The rights and obligations of inspectors



(1) Inspectors are required to



and take minutes of the individual) of the intermediate examination and report on

the result of the review of the management,



(b)) meet territorial unit with the content of the minutes of the partial review for

order to facilitate the adoption of measures to correct the errors and deficiencies

referred to in it,



(c) the territorial unit) to pass the draft report on the outcome of the review, the undersigned

controller responsible for management review,



(d)) to submit to the territorial unit of a proposal report on the outcome of the review

management a written opinion within 15 days from the date of transmission of the proposal to this

the message, if the controller responsible for the management of examination in the reasoned

the case does not provide for a longer period; the opinion is delivered to the controller
responsible for the management of the examination, the



(e)) to examine the objection in the opinion referred to in subparagraph (d)) and written

the conclusions of this examination, signed by the supervisor responsible for the management of

the review or its immediate parent, pass the territorial unit and

discuss it with him, without undue delay, but not later than 15 days

from the date of receipt of the opinion, if the total of the

the case of the controller responsible for the management of the examination within a period longer



(f)) to pass and with territorial total to discuss the final wording of the report on the outcome of the

review management. ".



(2) If the inspector discovers while reviewing the fact obtained

the fact that the crime has been committed, it shall proceed according to a special legal

^ Code 21) and forthwith in writing inform the competent

the City Government or the statutory authority of the voluntary volume.



section 7 of the



The rights and obligations of the territorial units



The territorial unit in which the examination is held, has the right to



and) be acquainted with the content of the entries of the primary review,



(b)) be familiar with the draft report on the outcome of the review (section management

10) and receive its copy,



(c) deliver to the controller responsible for the management of) a review of the written

opinion on the draft of the report on the outcome of the review of the management and

should his application to the report on the outcome of the review of the management,



(d)) be informed of the outcome of the review of the management and to receive

her copy.



§ 8



cancelled



§ 9



the title launched



The review is required to provide the synergy and territorial total

established or founded a legal person. For contributory organization

přezkoumávající authority checks forest management and the management of the property and the

posts, which gave her territorial unit.



§ 10



Report on the outcome of the review of the management and its elements



(1) report on the outcome of the review of the management of the Protocol is replaced by the

controlled by the control procedure and processes on the basis of the results of the

a one-time review, or on the basis of partial

review.



(2) the report on the outcome of the review of the financial management in addition to the requirements of the

set the control regulations for the Protocol on inspection shall contain



and) the place where the examination is to be made, the period in which it took place,

on the year, for which the review has been done,



(b) a description of the identified) errors and deficiencies, including the introduction of obligations,

provided for by specific laws, regulations, or other aspects of the

the review, which has not been complied with,



(c) the designation of all documents) and other materials used in the review,



(d) the conclusion of the review).



(3) the conclusion of the report on the outcome of the review of financial management within the meaning of paragraph

2 (a). (d)) shall contain a statement that the review, pursuant to section 2 and 3



and) there were errors and deficiencies, or



(b)) were detected errors and deficiencies, which do not have the seriousness of the shortcomings

referred to under (c)), or



c) deficiencies are established, consisting of



1. in violation of budgetary discipline, or in the creation of the administrative tort by

the law governing the budgetary rules of the local budgets,



2. in the incompleteness, incorrectness or neprůkaznosti accounting,



3. the alteration of records or documents, in violation of the specific legal

provisions,



4. in breach of duty or exceeding the scope of the territorial unit

established by legislation,



5. in the neodstranění of the deficiencies found during the partial examination, or when a

review for prior years, or



6. in the absence of agreed conditions for review under the control of the order,

which made it impossible to meet the requirements laid down in sections 2 and 3.



(4) the Mandatory requirements of the conclusion of the report on the outcome of the review

management is also



and the risk warning), which can be inferred from the findings by

paragraph 2 (a). (b)) and that may have a negative impact on the economy

a territorial unit in the future,



(b) the share of) the claims and obligations on the budget of the territorial unit and

the share of the pledged property to the total assets of the territorial unit.



(5) a compulsory annex to the report is the opinion referred to in section 7 (2). 1 (a).

(c)), if it was delivered to the appropriate controller.



(6) the obligation to ensure the proper and timely preparation of the report on the outcome of

review of the management controller has authorized management review.



§ 11



Consideration of the report on the outcome of the review of the management and its transmission



The controller responsible for the management of the review of the report on the outcome of

review of the management of the Mayor of the city, with the

the Mayor, for the city of Prague with the Mayor of the capital city of Prague, the

the region with the Governor of the region, the volume of voluntary communities with the person designated

the statutes of voluntary communes, and the volume of the Regional Council of the region

coherence with its Chairman and shall transmit to them the copy.



§ 12



Review of Auditor



(1) the Auditor shall review the provisions of sections 2, 3 and 10, and article 17 of

paragraph. 2.



(2) Consideration of the report on the outcome of the review of the management of the auditor is

be governed by the provisions relating to the consideration of the report on the verification of accounts pursuant to

the law governing the audit function similarly. A copy of the report on the

the result of the review of the management of the auditor shall transmit to the territorial unit

přezkoumávajícímu authority within 15 days after the discussion in the institutions

territorial unit. ^ 23)



(3) when a review is performed on the basis of the contract referred to in section 4, paragraph 4. 7

progresses, the auditor according to the law governing the audit function.



section 13



The adoption and implementation of measures to correct the errors and deficiencies



(1) the territorial unit shall



and take measures to rectify) errors and deficiencies mentioned in the minutes of the

component of the examination, and it shall, without delay after being familiar with them

under section 6 (1). 1 (a). (b)), and to submit information about it, including information about

their meeting, in the final review of the přezkoumávajícímu authority,



(b)) to take measures to remedy the errors and deficiencies mentioned in the report on

the result of the review of the management of the authority, who examine the processed

or auditor and submit written information about it to the competent

přezkoumávajícímu the authority, no later than 15 days after the discussion of this

the report, together with the final account in the bodies of the territorial whole. ^ 23)



(2) a territorial unit is further obliged to in the information referred to in paragraph 1 (b).

(b)) indicate a deadline by which the competent authority shall přezkoumávajícímu

a written report on the implementation of the measures adopted, and in this period the competent

přezkoumávajícímu authority of the message to send.



(3) the Přezkoumávající authorities are authorised to inspect the implementation of the measures,

adopted pursuant to paragraph 1. Inspectors check compliance

governed by the provisions of the control of the order.



Law enforcement fines



§ 14



Administrative offences



(1) the territorial unit has committed misconduct by



and) to 15 days from the date of consideration of the report on the outcome of the review

management auditor in the bodies of the territorial unit does not pass her copy of the

the competent authority referred to in section 12 of the přezkoumávajícímu paragraph. 2,



(b)) in contravention of section 13 (3). 1 (a). (b)) within 15 days after consideration of the reports of

the result of the review of the management of the authority, who examine the processed

or auditor



1. takes measures to rectify the errors and deficiencies mentioned in the report on

the result of the review of the management, or in the minutes of the partial examination,

or



2. about the absence of the written information to the competent přezkoumávajícímu

authority,



(c) information on the adoption of) measures to remedy the errors and deficiencies mentioned

in a report on the outcome of the review of the management of the processed

who examine the authority, or by an auditor does not specify the period within which it shall

the competent authority of the přezkoumávajícímu written report on the implementation of the adopted

the measures referred to in section 13 (3). 2, or



(d)) does not provide an auditor on its request, all documents required by it,

other documents, information or explanation pursuant to the control procedure.



(2) for the administrative offence referred to in paragraph 1 shall be imposed of up to 50 000 Czk.



§ 15



Common provisions in administrative deliktům



(1) the territorial unit for the administrative offence does not match, if he proves that

He expended every effort, that it was possible to require that the infringement of the

a legal obligation.



(2) in determining the acreage of a fine account of the seriousness of the administrative

tort, in particular to the way a criminal offence and its consequences and to

the circumstances under which it was committed.



(3) the responsibility for the administrative tort shall be extinguished if the relevant

the administrative authority has commenced proceedings for 6 months from the date on which it

learned, but not later than 1 year after the date when it was committed.



(4) administrative offences under this Act shall examine přezkoumávající

authority.



(5) the Fines collected and enforced by the authority, which is saved.



(6) income from fines is the income budget authority, that is saved.



section 16 of the



cancelled



§ 17



cancelled



section 18



cancelled



§ 19



The provisions of section 14 and 15 shall not apply, if the same breach of the laws

the laws of the penalty for an offence or for administrative offence under

the specific legislation.



Supervision of compliance with the law



section 20



Supervision of the examination undertaken by the auditor



(1) the examination shall be subject to the supervision of the State in the case, that is done by an auditor.
Supervision of the examination is the responsibility of the Ministry of finance and shall be exercised in

the relevant territorial unit.



(2) a written report of the results of the inspections over the reviews work undertaken

the Auditors shall forward Treasury Chamber of Auditors of the Czech Republic to

further procedure according to the law governing the audit function.



The provisions of the common, transitional and final



section 21



Common provisions



(1) this Act does not affect the scope of the administrators of the State chapters

budget and other supervisory authorities exercise the recipients of subsidies

control of compliance with the purpose and the conditions of granting subsidies under the Special

legislation. ^ 29)



(2) If a part of the voluntary volume is the capital city of Prague, fixes

the procedure for the review of its management review of the provisions

the capital city of Prague.



section 22



Transitional provisions



(1) the review initiated before the date of entry into force of this Act

completed according to present legislation. ^ 30)



(2) the time limit for the notification method of review, pursuant to section 4, paragraph 4. 1 per year

2004 ends the last day of the calendar month following the date

the entry into force of this law.



section 23



Cancellation provisions



Shall be repealed:



1. Decree No. 41/2002 Coll., on the review of the management of the territorial

authorities and voluntary municipalities.



2. Decree No 67/2003 Coll., amending Decree No. 41/2002 Coll., on

review of the management of territorial self-governing units and voluntary

municipalities.



section 24



The effectiveness of the



This Act shall take effect on the first day of the calendar month

following its publication.



Zaorálek in r.



Klaus r.



Spidla in r.



Selected provisions of the novel



Article. LX law no 64/2014 Sb.



The transitional provisions of the



If the management review was initiated under the Act No 420/2004

SB. before the date of entry into force of this law, and to this day has not been

completed, proceed according to the existing legislation.



section 17, paragraph 1). 4 of law no 250/2000 Coll. on budgetary rules

local budgets, as amended.



section 16 of Act No. 248/2000 Coll., on the promotion of regional development, as amended by

Act No. 138/2006 Sb.



section 17, paragraph 2). 2 and 3 of the law no 250/2000 Sb.



3) section 7 and 10 of law no 250/2000 Coll., as amended by Act No. 450/2001 Sb.



Decree 323/2002 Coll., on the budget structure, as amended

regulations.



4) section 48 of the Act No. 128/2000 Coll.



section 24 of Act No. 129/2000 Coll., as amended by law no 231/2002 Sb.



§ 21 of Act No. 131/2000 Sb.



5) section 54 of the Act No. 128/2000 Coll., as amended by Act No. 313/2002 Sb.



section 27 of Act No. 129/2000 Coll.



section 28 of the Act No. 131/2000 Sb.



6) Annex No 1 letter D. Decree No 505/2002 Coll., which

implementing some provisions of Act No. 563/1991 Coll., on accounting, in the

as amended, for the accounting units, which are territorial

self-governing units, příspěvkovými organizations, State funds and

branches of the State.



7) section 37 of Act No. 218/2000 SB., o #P37 budgetary rules and amending

some related acts (budgetary rules).



8) Law No 40/2004 Coll., on public procurement.



section 38, paragraph 9). 3 and section 85 (a). j) Act No. 128/2000 Coll., as amended by

amended.



§ 17 paragraph. 3 and § 36 odst. 1 (a). I) Act No. 129/2000 Coll., as amended by

amended.



§ 35 paragraph. 6, § 59, paragraph. 3 (b). (d)), section 68, paragraph. 2 (a). about) and section 89, paragraph.

2 (a). and Act No. 131)/2000 Coll., as amended.



10 § 85 (a)). (g)) and k) Act No. 128/2000 Coll., as amended

regulations.



§ 36 odst. 1 (a). (f)), and (j)) and section 59 paragraph. 2 (a). (c)) Law No 129/2000

Coll., as amended.



section 59 paragraph. 3 (b). I) and (n)), section 68, paragraph. 2 (a). with section 89, paragraph). 2 (a).

(h)) and i) of Act No. 133/2000 Coll., as amended.



11) Law No 250/2000 Coll., as amended.



12) section 38 of the Act No. 128/2000 Coll., as amended.



section 17 of the Act No. 129/2000 Coll., as amended.



section 35 of Act No. 128/2000 Coll., as amended.



13) Act No. 563/1991 Coll., on accounting, as amended.



Decree No 505/2002 Sb.



14) Government Decree No. 253/1992 Coll., on the emoluments of staff

public authorities, some of the other institutions and municipalities, as amended by

amended.



Government Regulation No. 37/2003 Coll. on remuneration for the performance of functions of the members of the

Councils.



section 38, paragraph 15). 1 of law no 131/2000 Coll., as amended.



17) Act No. 218/2002 Coll., on the service of civil servants in administrative

offices and on the remuneration of such employees and other employees in the

administrative offices (business law).



Act No. 312/2002 Coll., on officials of territorial self-governing units and the

change some of the laws.



Decree No. 512/2002 Coll., on professional competence of officials

territorial self-governing units.



for example, section 20) 46 of Act No 148/1998 Coll., as amended

regulations.



21) section 8 of Act No. 141/1961 Coll., on criminal court proceedings (the criminal

of procedure), as amended.



section 17, paragraph 23). 5 and 7 of law no 250/2000 Sb.



section 43 of the Act No. 128/2000 Coll.



section 20 of Act No. 129/2000 Coll., as amended.



section 39 of the Act No. 131/2000 Sb.



§ 7, paragraph 27). 1 Act No. 320/2001 Coll.



28) section 87 to 91 of Act No. 129/2000 Coll.



Section 106 to 117 of law No. 131/2000 Sb.



29 for example, § 1, paragraph 1). 1 (a). (b)) and section 6 (1). 2 Act No. 531/1990

Coll. on territorial financial authorities, as amended.



30) Decree No. 41/2002 Coll., on the review of the management of the territorial

authorities and municipalities, voluntary nature, as amended by Decree No.

67/2003 Coll.